Britain To Privatize Air-Traffic Control

November 30, 2000

Don't look for Britain to sell off shares of its air-traffic control system to the public. What is called "privatization" is a much more timid step than that. The government will still retain much control and have a major say in how the new company, National Air Traffic Services Ltd., operates in the future.

However, the for-profit corporation will include participation by business stakeholders:

Forty-nine percent of shares in the so-called "public-private partnership" are being reserved for the successful bidder among one of three outside investor groups -- largely alliances between major air-industry companies, including Lockheed-Martin Corp. of the U.S.

Forty-six percent of the company will remain in state hands -- and 5 percent of shares will go to employees.

The state will also keep a so-called "golden share" that grants it extra control over the company's future.

The government expects the privatization to take place in March.

The U.K. government expects to raise the U.S. equivalent of $1.42 billion from the sale.